Altcoin-Led Crypto Rally Gains Momentum Amid Global Risk-On Shift; Bitcoin Lags in Tight Channel
Global markets advanced on Friday as easing U.S.–Japan trade tensions lifted investor sentiment, sparking gains across equities, crypto assets, and gold. Oil, however, remained under pressure, headed for its steepest weekly drop in two months.
Japan’s Nikkei 225 surged 2.3% after chief trade negotiator Hiroshi Suzuki confirmed the U.S. would end stacking of universal tariffs and reduce automobile duties in tandem. The MSCI Asia Pacific Index added 0.5%, notching its fifth consecutive gain.
Altcoins Outperform as Crypto Market Cap Hits $3.76 Trillion
The digital asset market saw a notable resurgence, with the total crypto market capitalization rising 3% to $3.76 trillion over the past 24 hours. Altcoins led the advance:
- Ethereum (ETH) rose 7.3% to $3,935
- XRP jumped 12% to $3.36
- Solana (SOL) gained 4.7% to $175.19
- Dogecoin (DOGE) climbed 8.8% to $0.22
Bitcoin (BTC) posted a more modest 1.9% increase to $116,781 on $38.8 billion in daily trading volume.
BTC Stuck in Consolidation Zone Despite Broader Market Gains
FxPro’s chief market analyst Alex Kuptsikevich said the crypto rally aligns with “growing appetite in the stock markets,” but warned that BTC remains locked in a tight range. “Bitcoin is trading between key support at $112,000 and resistance near $120,000, with no decisive breakout yet in sight,” he noted.
On-Chain Metrics Reflect Cooling Momentum
Glassnode data revealed a shift in BTC market sentiment from “euphoria” to “cooling off.” Spot Bitcoin ETF inflows have declined nearly 25%, while network activity and transaction fees continue to fall.
Options market data suggests traders are hedging against potential downside, with increased protective positioning below $100,000 into late August. This points to caution ahead, as expectations grow for subdued price action through the summer.
Commodities Mixed: Gold Firms, Oil Drops
In commodities, gold extended its climb amid the broader risk bid. Oil, meanwhile, slipped toward a weekly decline of more than 4%—its worst since June—pressured by a build in U.S. inventories and softer Chinese import figures, according to Bloomberg.
